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Business News of Tuesday, 18 April 2017


First 100 days: ACEP rates power sector performance of Nana Addo administration

The Africa Centre for Energy Policy (ACEP) commends the government for availing itself to, for the first time, give Ghanaians an update of its progress so far.

In a state released on the April 18, 2017 and signed by the Acting Executive Director, Benjamin Boakye, ACEP encourage the government to continue this collaboration with the media and relevant stakeholders as it serves as evidence of our strengthened democracy.

ACEP recognized the good intervention by government to ensure cheaper electricity delivered to the grid but was unsure as to how the government arrived at the 10 Cent cap.

‘The existing politically determined cost of generation through negotiated contracts is the reason tariffs are high. The solution therefore is not in setting a cap, but aligning the real fundamentals that determine the cost of generation’

With respect to establishing policy to separate VRA’s thermal operations from hydro, ACEP lauded the effort adding that it will shift the burden of the highly mismanaged thermal component of VRA from the company and improve efficiency of operation and decision-making through private sector participation.

ACEP however recommended an arrangement that still maintains some shares in the thermal company for VRA hydro to ensure that VRA’s cash flow is stabilized especially in times of low water levels in the dams.

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